India's eight core infrastructure industries continued to grow, but at the slowest pace since October 2022.
The index of eight core industries rose 3.8% in December 2023, as compared with 7.9% in November, according to data released by the government on Thursday.
Given the unfavourable base of December 2022, there was an expectation of a significant moderation in core sector growth in December 2023, said Suman Chowdhury, chief economist at Acuite Ratings. Nevertheless, the sequential growth has been healthy at 5.9%.
While seven out of eight sectors witnessed a year-on-year increase in output, growth was seen moderating in most sectors. "Following the tepid core sector growth in December 2023, we project the IIP expansion for that month at a bleak 1-3%," said Aditi Nayar, chief economist at ICRA.
Break-Up Across Eight Core Sectors (YoY)
Coal output rose 10.6% in December, versus 10.9% in November.
Crude oil output fell by 1%, as compared with 0.4%.
Natural gas output grew 6.6% versus 7.6% a month ago.
Refinery products rose 2.6%, as compared with 12.4% in the previous month.
Fertiliser production gained 5.8%, as against 3.4% in the last month.
Steel output rose 5.9%, as compared with 9.4% last month.
Cement rose 1.3% versus a fall of 4% in the previous month.
Electricity output rose 0.6%, as compared with a rise of 5.7% in November.
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